Summary
Thermo Fisher Scientific Inc. (TMO) reported its financial results for the second quarter and the first six months ended June 29, 2013. The company demonstrated revenue growth driven by both organic demand and strategic acquisitions. For the second quarter, revenues increased by 4.3% year-over-year to $3.24 billion, and for the first six months, revenues grew by 4.3% to $6.43 billion. The most significant development during the period was the announcement of the pending acquisition of Life Technologies Corporation for approximately $13.6 billion. This transformative deal, expected to close in early 2014, is poised to significantly expand TMO's capabilities in genetic analysis and scientific research markets. The company has secured significant financing commitments, including a bridge loan and a term loan, and has also initiated equity financing through forward agreements.
Financial Highlights
56 data points| Revenue | $3.24B |
| Cost of Revenue | $1.57B |
| Gross Profit | $1.36B |
| R&D Expenses | $96.70M |
| SG&A Expenses | $869.60M |
| Operating Expenses | $2.86B |
| Operating Income | $375.40M |
| Interest Expense | $64.40M |
| Net Income | $277.40M |
| EPS (Basic) | $0.77 |
| EPS (Diluted) | $0.76 |
| Shares Outstanding (Basic) | 360.00M |
| Shares Outstanding (Diluted) | 363.50M |
Key Highlights
- 1Revenue increased by 4.3% to $3.24 billion for the second quarter of 2013 and by 4.3% to $6.43 billion for the first six months of 2013, driven by acquisitions and increased demand.
- 2Announced agreement to acquire Life Technologies Corporation for approximately $13.6 billion, a significant strategic move expected to close in early 2014.
- 3Secured substantial financing for the Life Technologies acquisition, including a $3.56 billion bridge credit facility and a $5 billion term loan facility.
- 4Net income for the second quarter of 2013 was $277.4 million, up from $233.8 million in the prior year period.
- 5Operating income from continuing operations for the second quarter was $375.4 million, a slight increase from $367.8 million in Q2 2012.
- 6Cash flow from operations for the first six months of 2013 was $776.7 million, a decrease from $899.5 million in the prior year, partly due to acquisition-related fees.
- 7The company continues to manage costs effectively, with operating income margins remaining strong across its segments, although impacted by restructuring and acquisition-related charges.